If the country was economically bankrupt in 2010, it is intellectually bankrupt in 2017. On the eve of the general election, politicians of all parties have rarely been so devoid of progressive ideas [...] Yet in substance, May’s approach remains mere tinkering at the edges of economic policy. The Conservatives remain stubbornly allergic to – or ignorant of – Keynesian macroeconomics. [...] [and housing and real estate lending distorting the lending picture. houses are not productive! R&D, and firms are. and creating long-term jobs w real incomes to spend (not remortgaging your home bc of housing bubble]

Not only has sugar beet been an unusually reliable source of income for 3,500 of Britain’s arable farmers, but its broad green leaves are an important rotational crop in between soil-sapping wheat. If they are forced to compete head-on with what the NFU regards as artificially subsidised cane sugar from producers places in places such as Brazil and Thailand, it fears the economics of an industry supporting 9,600 jobs will unravel. The NFU accuses many cane-producing countries of dumping exports at prices below their true cost of production because governments offer various complicated farm subsidies. But some of these claims, particularly in Brazil, are disputed.

The brewer has also faced unexpected pressure from a surprisingly stiff increase in alcohol taxes in the budget earlier this month.

Philip Hammond raised beer duty in line with the retail price index measure of inflation, but used a forecast rate of 3.9%, rather than the current RPI level of 3.2%.

The higher-than-expected duty rise, coupled with increased costs for bottles, packaging and fuel because of the pound’s slump since the EU referendum, is understood to be behind the Heineken’s decision to ask for higher prices.

Mr O'Brien said it was "inevitable" that more companies would increase the prices of products and services.
"Retailers are struggling with increased costs to import goods, and it's something they cannot afford to swallow themselves," he told the BBC.
"We will definitely see further price rises, so if people are in the market for big-ticket items such as laptops, it might be a wise idea to buy now rather than later."

costs increase by £40m [...] Carolyn McCall told the BBC the drop had made fuel - which the firm pays for in US dollars - more expensive. She added that the increased cost of travelling abroad is deterring some British holidaymakers.
Sterling has lost more than 10% of its value against the dollar since Brexit.
Ms McCall's comments came as Easyjet released its quarterly results, which warned that the company is earning less from each passenger.

"With foreign exchange risks, even if the value of the overseas property rises, any gains will be eroded if the country's currency depreciates against the Singapore dollar," Mr Tok explained. // Chinese (and Asian) love their Betongold (most likely to be around 50% of their portfolio). Now in the hole because GBP lost 10%. But doesn't account for Yuan depreciation/devaluation.

[ Richard Koo mentioned in a talk that Fed officials dont know abt extend/potential of upward pressure 4 long-dated bonds once Taper started & bond holdings have to be reduces - put on the market + this as a potential long-term trend! ] // we do have an idea of what foreign FX reserve liquidation means for USTs. "Suppose EM and developing countries, which hold $5491 bn in reserves, reduce holdings by 10% over one year - this amounts to 3.07% of US GDP and means 10yr Treasury yields rates rise by a mammoth 108bp ," Citi said, in a note dated earlier this week. In other words, for every $500 billion in liquidated Chinese FX reserves, there's an attendant 108bps worth of upward pressure on the 10Y. Bear in mind here that thanks to the threat of a looming Fed rate hike and a litany of other factors including plunging commodity prices and idiosyncratic political risks, EM currencies are in free fall which means that it's not just China that's in the process of liquidating USD assets.

[3rd day in a row Yuan/RMB is devalued by PBOC (13/08/15)] “We’re all going to feel it: we’ll feel it through commodities; we’ll feel it through manufactured goods exports, not just from China but from everywhere that has to compete with it; and we’ll feel it through wages.” [...] China could be willing to let the yuan depreciate by as much as 25% over the next five years – “stone by stone, step by step” – in an attempt to restore the export-led growth that was such a winning formula [...] China [may be] trying to protect itself against the period of financial instability [following Taper by western central banks Fed/BOE] [or counter $ recent rise 21% & peg against $] [or fight home grown recession with kitchen sink] // &! bloom.bg/1gC8FFe &! bloom.bg/1WkMfZZ &! bloom.bg/1hy7O9l &! bloom.bg/1NpE4FI &! bv.ms/1IKB3fX // what is the new normal 4 growth in this global economy, competitive = keeping prices low = inflation & low interest rate pressure.

bbc.in/1WfUOFp // The weakening of the currency will also put the US Fed on the spot. In effect China is exporting deflation to the US - and so some will argue that the Fed should find an elegant way to back away from its recent signalling that September will see the first rise in interest rates since the Crash of 2008. Or to put it another way, in terms of US manufacturers and exporters, Beijing has done the monetary tightening that arguably the US economy needs. // &! tcrn.ch/1Tnj89s Apple shares reaction -5%, higher import costs. // &! bbc.in/1TrsssP - rattles the markets. // &! bit.ly/1JdPM8F - Der starke Verlust des Yuan deutete darauf hin, dass China einen Währungskrieg mit dem Westen provoziert. Doch tatsächlich spiegelt der niedrige Kurs die Schwäche der chinesischen Wirtschaft. // &! 3rd day, 3 devaluation move - bit.ly/1Ns1kmu &! Western central banks advised to resist [taper] & 2 prepare 2 ward off deflationary slump in face of cheaper Chinese exports - bit.ly/1DLIEy3

The rouble has lost more than half its value against the dollar this year, hit by cheaper oil and Western sanctions. Both of these have weakened the Russian economy. &! http://www.bbc.co.uk/news/business-30491170 "Here are the numbers that explain why the Russian economy is imploding in the face of a tumbling oil price and Western sanctions."

The strong yen has rendered Japan’s auto industry uncompetitive and manufacturers are now accelerating the move offshore. Auto shipments shrank to 4.4 million last year from 6.5 million in 2007, according to the WSJ:

The era of wait-and-see is over. Japanese manufacturers realize they need to move quickly or risk losing competitiveness

Trade deficits in Japan will be a staple over the next 10 years and the yen will face long term pressure.

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Incisive Analysis – IFR Markets goes beyond commentary to provide a forward-looking perspective and a deeper understanding of market movement.More Than Just a Screen Service –a series of intra-day emails provide a summary of the day’s market activity.A Truly Global Resource – closely affiliated with IFR magazine , IFR Markets draws on the expertise and experience of over 70 dedicated analysts, operating out of bureaux throughout the financial world and reporting in all time-zones.A Dedication to Continual Improvement – quarterly enhancements and releases demonstrate our ongoing commitment to improving the IFR Markets serviceAvailable either online or via proprietary vendors.

SummaryDukascopy is a highly professional forex trading platform who are regulated and controlled through the ARIF and the FFA (Federal Finance Administration).So for safe trading & for experienced players, they are hard to beat, with full access to the Swiss Foreign Exchange Marketplace. You´ll need to fax or send the appropriate ID documents to trade here, but in terms of tools and platforms (for the iPhone, iPod, Android, desktop software, etc) they have no equal.And if you are looking for ultra-tight spreads, Dukascopy uses real-time interbank rates with spreads like 0.5 – 1 pip on the major currency pairs such as EUR/USD, (some of the tightest spreads available).For more experienced, higher volume traders, Dukascopy is "best of breed".In 2010 Dukascopy was authorized by the Swiss Financial Market Supervisory Authority FINMA to conduct banking activities (Dukascopy Bank SA): so it´s now a Swiss bank- a safe place for your money.

This week we are reviewing FX Junction, a new face in the forex social networking arena. The current Retail Forex Industry report has a side by side comparison of several players including Currrensee, FX STAT, Myfxbook, Tradency, Zulutrade and eToro’s Open Book to help our readers make a decision on which site to choose based on their needs. While Google+ vs. Facebook plays out in the main stream media, the forex industry too is seeing fierce competition between players in forex social media. Competition means that traders get better content and features delivered to them.

Forex broker/dealers have recently been sponsoring major sport teams to have their logo displayed in front of millions of fans. Their primary goal is to promote their brand as well as legitimize the industry as a whole. FXPro sponsors Fulham and Aston Villa, well-established English soccer teams, as well as AS Monace, one of France’s leading clubs. MIG is a sponsor of the Mercedes F1 team with Michael Schumacher as one of their drivers, FXDD sponsors the Red Bull F1 team, Alpari sponsors the New York Knicks basketball team and New York Ranger hockey team, Saxo Bank sponsors cycling tournaments, FXOpen sponsors Drift challenges and the list goes on.

BOE: UK April Daily Forex Trading Turnover Highest On Record
-- U.K. average daily foreign exchange turnover record $2.191 trillion in April
-- U.K. foreign exchange volumes up 23% from October; up 30% on year
-- Rise driven by 32% increase in spot trading, 19% rise in foreign-exchange swap trading
LONDON -(Dow Jones)- Currency trading flows in the U.K.--the world's biggest dealing hub--grew by 23% in the six months to April, taking the daily average to a record $2.191 trillion, data released by the Bank of England showed Monday.

Currency day trading was essentially a non-existent market less than 10 years ago. But retail investors now make up 8% of the daily volume in the $4 trillion forex market, according to the Aite Group, a financial consulting firm.It's a unique demographic too. Currency traders are increasingly younger - with two-thirds of them under the age of 50. A higher percentage of females trade currencies than stocks as well.

“Our execution is extremely automated and sophisticated,” says Jonathan H. Clark, vice chairman of FX Concepts in New York. Half of his 70 employees are in IT and research, and spend months building models that track currency data back 20 years. In typical trades, Clark might run between five and 20 models. Not exactly rolling dice in Vegas, you might say.

(Reuters) - The average daily values settled in the foreign exchange market crossed the $5 trillion mark in June for the first time, data from FX settlement system CLS Bank showed on Wednesday.
Daily values settled last month rose to $5.12 trillion from $4.8 trillion in May and showed a 21 percent jump from a year earlier.
But the average number of daily foreign exchange payment instructions slipped in June from May and were lower compared with June 2010. The average daily volume of payment instructions fell to 818,152 instructions in June from 842,747 in May.
The figure was also lower than 899,565 instructions in June 2010. (Reporting by Naomi Tajitsu; Editing by Ruth Pitchford)

Digital Vega, a London based company, which provides electronic FX technology solutions to buy- and sell-side firms. Digital Vega has developed a unique software solution, which broadcasts request for quotes (RFQ) from buy-side asset managers, corporates, hedge funds and regional banks for FX option transactions to sell-side liquidity providers. The service is supported by seven of the largest FX banks, with a further five banks looking to provide pricing services in the near future.

If BNY Mellon did that transparently, it would probably be fine. But it doesn’t, and that’s the real problem here. It seems that even at the wholesale level, banks are much happier hiding their fees and profit sources than being transparent about them. Now BNY Mellon and other banks like State Street getting into trouble for its actions with state attorneys general and the SEC, maybe they’ll learn that honesty, in the long term, is a much better policy than trying to get one over on clients for whom you’re meant to be a fiduciary.

new high frequency trading firms have emerged in recent months, formed by FX quants and traders who have left large banks looking to capture new opportunities on the other side of the market. High frequency trading accounted for approximately 25% of overall trade volume at the end of 2009, a figure that is expected to hit more than 40% by year-end 2012.

Retail FX Represents A Significant 7.9% Of The Overall FX Market And Promises Continued Growth.
Aite Group estimates that the global retail FX audience surpassed 8.3 million people at the end of 2010, and that retail FX currently generates daily turnover of US$315 billion. This amount is equivalent to 7.9% of the overall daily FX volume, and is already 32% larger than the average daily turnover for all other equity markets.
New regulations in major retail FX markets (including Japan and the United States) are expected to curtail the maximum leverage offered and bar unregistered brokers, moderating the rapid growth that the retail FX market has seen since 2005. These regulations are also triggering continued broker consolidation, higher standards, and lower trading costs. Conversely, the impact from these regulations is also attracting large new players to the space and setting the groundwork for continued, sustainable growth.

The Ranks Of Firms Offering Retail FX Are Set To Grow As More U.S. Securities Firms And Banks Tap The White-Label Services Of Established FX Brokers.
Boston, June 28, 2011 – A new report from Aite Group examines the latest trends in retail foreign exchange (FX or Forex) brokerage, with particular emphasis on the white-label market. Written as a business-strategy update for brokers and a partner-selection guide for new entrants, this report identifies the market’s new direction and discusses what it takes to compete. in the broker business.

Last week it was Forex.com, now it is Oanda. As a reminder "... on Friday told clients it will discontinue its gold and silver over-the-counter products marketed to retail investors who are U.S. residents. It asked investors to close their positions by July 15." This was first reported on Zero Hedge. "Trading gold and silver over the counter -- bypassing a futures exchange -- offered investors a chance to enter a highly speculative, leveraged market that also left many investors at risk of fraud, according to one trade group. “In order to trade, it needs to be done in a exchange, or it can’t be done at all,” said Dan Driscoll, a vice president with the National Futures Association. The industry group asked Congress for such changes, due to numerous cases of fraud in such contracts. Doing business with a futures exchange offers retail investors more protections and transparency, he said." There you go: it's the extensive fraud that did it.

Just as OANDA did not so long ago, MB Trading too attained FSA authorization and is preparing to launch within few months. In fact, MB attained authorization back in April 2011 while OANDA in May.MB Trading European operations will be conducted under the name MBT Financial UK LTD, using the www.tradembt.eu website, and spearheaded by one Ila Jehl – formerly CEO and President of TradeOptimizer Group Inc and Director at NASDAQ OMX Futures Exchange (NFX).
Unlike OANDA, which received permissions to deal with just about every asset possible, MB’s permissions are limited to offering retail forex only.Evyerthing I said about OANDA’s FSA situation obviously applies to MB’s case as well:

offer non-US clients more flexible conditions, such as higher leverage. Secondly it’s a safe house in case forex regulation in the US gets even more strict ...

A broker like FXCM advertises that they are a Non Dealing Desk broker (passing your trade to interbank counter parties) while another, GFT openly advertise that they are not a bank but a dealer. Each business model comes with an array of issues that a trader must understand. Even the rollover rates (used by carry traders to earn interest on their positions) vary from broker to broker. Add to this the multitude of advanced charting platforms available to a trader and sooner or later a trader’s equity is split amongst multiple brokers. Not long ago a survey done by an independent research firm in the UK found that the average British trader has 3 – 4 brokers.

On April 29th, the Treasury Department proposed that foreign exchange (forex) swaps be exempt from Dodd-Frank Regulation. If they were to come under regulation, forex swaps would be required to be traded transparently on open trading platforms and cleared via clearinghouses. This would necessarily drive up operation costs, some say prohibitively. Consequently, the Treasury Department has argued that “[c]entral clearing requirements will strengthen the rest of the derivatives market, but could actually jeopardize practices in the foreign exchange swaps and forwards market that help limit risk and ensure that it functions effectively.”